EXPLANATORY STATEMENT for
ASIC Corporations (Repeal) Instrument 2018/193
Prepared by the Australian Securities and Investments Commission
Corporations Act 2001
The Australian Securities and Investments Commission (ASIC) makes ASIC Corporations (Repeal) Instrument 2018/193 (the Instrument) under paragraphs 601QA(1)(a), 911A(2)(l), 1020F(1)(a) and 1020F(1)(c) of the Corporations Act 2001.
Paragraph 601QA(1)(a) provides that ASIC may exempt a person from a provision of Chapter 5C of the Act.
Paragraph 911A(2)(l) provides that ASIC may exempt a person from the requirement to hold an Australian financial services licence for a financial service they provide. This is done by granting an exemption in writing and publishing it in the Gazette.
Paragraph 1020F(1)(a) provides that ASIC may exempt a person from a provision of Part 7.9 of the Act.
Paragraph 1020F(1)(c) provides that ASIC may declare that Part 7.9 of the Act applies in relation to a person or a financial product as if specified provisions were omitted, modified or varied as specified in the declaration.
The Instrument repeals one class order. Under subsection 33(3) of the Acts Interpretation Act 1901 (as in force as at 1 January 2005 and as applicable to the relevant powers because of section 5C of the Act), where an Act confers a power to make, grant or issue any instrument (including rules, regulations or by-laws), the power shall be construed as including a power exercisable in the like manner and subject to the like conditions (if any) to repeal, rescind, revoke, amend, or vary any such instrument.
- Background
Under the Legislation Act 2003, legislative instruments cease automatically, or ʻsunsetʼ, after 10 years, unless action is taken to exempt or preserve them. To preserve its effect, a legislative instrument must be remade before the sunset date. The purpose of sunsetting is to ensure that instruments are kept up to date and only remain in force while they are fit for purpose, necessary and relevant.
ASIC Class Order [CO 07/753] Singaporean collective investment schemes ([CO 07/753]) provides relief for Singaporean collective investment schemes from the requirement to register as a managed investment scheme, obtain an Australian financial services licence or comply with financial product disclosure requirements.
[CO 07/753] is to sunset on 1 April 2018.
After reviewing the operation of [CO 07/753], ASIC has determined that it is not operating effectively or efficiently and is not being relied on by any entity.
2. Purpose of the instrument
The purpose of the Instrument is to repeal [CO 07/753] as it is no longer operating effectively or efficiently.
3. Operation of the instrument
Paragraph 1 of Schedule 1 of the Instrument repeals [CO 07/753].
4. Consultation
ASIC consulted with the Monetary Authority of Singapore and received no adverse comments.